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Black Economy

Categories: Econ, Tax

Remember that time you made money mowing your neighbor’s lawn and didn’t report that income to the IRS? Good job, you’re part of the black economy.

The black economy is economic activity that happens conveniently outside rules, regulations, and taxes. Things like illegal drugs, pirated music, and under-the-table payment all fall under the black economy (and tax evasion) umbrella. Make it rain, folks.

Find other enlightening terms in Shmoop Finance Genius Bar(f)